Cambridge Investment Research Advisors, Inc.

Document Summary The U.S. Securities and Exchange Commission obtained a final judgment against Cambridge Investment Research Advisors, Inc. (CIRA) for failing to disclose material conflicts of interest and breaching its duty of care related to investment recommendations. The consent order permanently enjoins CIRA from violating securities laws and requires it to pay $15 million in monetary relief. Main Purpose The main purpose of this litigation release is to inform the public about the SEC's enforcement action against CIRA for undisclosed conflicts of interest in mutual fund and account recommendations. Industry Impact This case highlights the importance of investment advisers disclosing material conflicts of interest, as failing to do so can result in significant monetary relief and reputational damage. The SEC's actions demonstrate its commitment to protecting investors from such misconduct. Compliance Considerations Investment advisers must ensure that they disclose all material conflicts of interest and act in their clients' best interests when making investment recommendations. Firms should have policies and procedures in place to prevent undisclosed conflicts and ensure compliance with securities laws.